TAX BENEFITS: When you create a charitable remainder trust, you receive an immediate tax deduction based on Pacific Battleship Center’s remainder interest in the trust and decrease estate taxes. If you create a charitable remainder trust with an appreciated asset, you may also avoid capital gains taxes.
Charitable Lead Trusts
A charitable lead trust functions like a mirror image of a charitable remainder trust. You create a charitable lead trust by transferring assets to the trust. The trust then pays Pacific Battleship Center an annual income for a fixed number of years, after which the principal from the trust reverts to you, your spouse, children or other beneficiary(ies) you name.
TAX BENEFITS: When you create a charitable lead trust, a few tax benefits you may enjoy include experiencing the impact of your giving, reducing the value of a taxable gift and thus your taxable estate, and control the payment method, term of the trust and beneficiaries.
Charitable Gift Annuities
Charitable gift annuities are a popular planned giving vehicle.
A charitable gift annuity (CGA) is a contract under which the California Community Foundation agrees to make fixed payments for life to you. After the donor(s) passes away, the remainder of the annuity is left for the benefit of Pacific Battleship Center. CGAs are an attractive giving option for many of our supporters who are 55 and older because they enable contributors to maintain income needed for living expenses after retirement and fulfill their desire to support the Pacific Battleship Center.
Benefits of a Charitable Gift Annuity
A reliable, partially tax-free stream of income beginning as early as age 60 to supplement retirement.
An immediate charitable income tax deduction based on Pacific Battleship Center’s remainder interest in the annuity (calculated based on the age of beneficiary(ies).
Deferment of capital gains taxes when the CGA is funded with appreciated securities.
For many Pacific Battleship Center supporters, CGAs also offer the added satisfaction of making a significant contribution toward Pacific Battleship Center’s work to celebrate the American spirit through educational programs, exhibits, and other vehicles.
Several Types of CGAs
The act of establishing a CGA with Pacific Battleship Center through the California Community Foundation (CCF) is not an investment, but rather a way to receive annuity payments while making a charitable contribution. In this respect, a gift annuity is different than a commercial annuity.
The gift annuity rates paid by CCF are those suggested by the American Council on Gift Annuities. These rates have been calculated so as to provide attractive payments to the donor and/or other annuitant(s) and also result in a sizable portion of the contribution remaining for the Pacific Battleship Center.
Because a charitable gift is involved, the rates are lower than those available through commercial annuities offered by insurance companies. CCF charges a 1% administrative fee against the existing value of the annuity assets: 0.5% goes to the trustee bank for its services, and 0.5% goes to CCF for its administrative expenses annual. At the end of the annuity, CCF takes a one-time fee of 5% of the assets remaining.